Unitech’s Chandra Says Demand for Affordable Homes to Rise

Sanjay Chandra, managing director at Unitech Ltd., India’s second-biggest developer, comments on India’s budget.

India will cut the budget deficit to 4.6 percent of its gross domestic product in the fiscal year ending in March 2012, Finance Minister Pranab Mukherjee said in his annual budget speech in parliament today. India will extend an interest rate subsidy on housing loans, Mukherjee said.

“We welcome the measures announced in the Union Budget 2011 to promote the development of affordable housing. Measures such as expanding the coverage of interest subvention to a loan of 1.5 million rupees for a house costing 2.5 million rupees, providing 100 percent deduction in respect of capital expenditure incurred on development of affordable housing, will certainly aid in boosting the demand and development of affordable housing in the coming months.

In 2009, Unitech recalibrated its strategy in order to attain our goal of achieving leadership in the residential housing segment by introducing affordable housing as a product offering under the ‘Unihomes’ brand. Our recent launches of Unihomes in cities such as Rewari, Mohali, Chennai, Noida and Bhopal has met with an encouraging response from the genuine buyers. With the new measures announced in the budget, we believe that the pace of demand will be robust and we are well poised to respond to this demand.”

To contact the reporter responsible for this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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